CRYPTOCURRENCY company Tether Holdings has amassed approximately 140 tons of gold worth $23bn in a Swiss nuclear bunker, making it the world’s largest known private bullion hoard outside banks and nation states, said Bloomberg News.
The company purchased over 70 tons of gold last year, exceeding the declared purchases of almost every central bank except Poland, which added 102 tons to reserves, said Bloomberg citing its own calculations.
Paolo Ardoino, CEO, said Tether was buying one to two tons weekly and intended to continue for at least several months. “We are soon becoming basically one of the biggest, let’s say, gold central banks in the world,” he told the newswire.
Tether generates profits from its $186bn dollar stablecoin USDT by investing customer deposits in US Treasuries and other assets including gold. The company stores its bullion in a former Cold War bunker protected by multiple steel doors, which Ardoino described as a “James Bond kind of place”.
Analysts at Jefferies Financial Group said Tether’s purchases likely contributed to gold’s 65% rally last year, describing the company as a “significant new buyer” that could drive sustained demand. Gold prices have exceeded $5,100 an ounce.
Tether has hired two senior gold traders from HSBC Holdings to manage its bullion activities and plans to compete with major banks in trading the metal, Ardoino said. The company purchases directly from Swiss refiners and large financial institutions.
The firm has also acquired stakes in Canadian gold royalty companies including Elemental Royalty, Metalla Royalty & Streaming, Versamet Royalties and Gold Royalty.
Tether’s gold token XAUT, redeemable for physical bullion, represents about 16 tons worth $2.6bn. Ardoino said there was a “good chance” circulation would reach $5bn to $10bn this year.
However, S&P Global Ratings downgraded USDT to a “weak” stability rating in November, citing rising exposure to high-risk assets including gold.
